Have you ever thought about investing in a property abroad?
In recent years, it has become increasingly clear that real estate abroad is accessible to Czechs. Of course, it depends on individual preferences, whether to buy a house or apartment by the sea or in the mountains. If you are looking for a suitable investment property, choose your preferred location with the possibility of own use and rent with an interesting yield.
It does not have to be only in the Czech Republic, but also in the environment of beautiful nature by the sea or near the ski resort of Alpine type, where in the summer season you can use, for example, hiking, cycling and golf course with panoramic views.
In the long-term, Czechs are the biggest buyers in Austria and Croatia. This is followed by Spain, Italy or France. Investing in the Alps is particularly worthwhile in apartments suitable for short-term rent, and those who think about them have a unique opportunity to buy their apartment in Austria. Why here? For example, since property prices in Switzerland are currently too high and therefore do not yield such an interesting return. Moreover, the legal environment in Switzerland is very complicated. In France, the situation is similar, as the initial investment is high and there is no such stable tax environment as in Austria, for example. As for the rental of real estate, a great advantage of the Alpine country is the so-called dual season. In the case of a glacier, the winter season is also extended for other spring months. The people of the Alps like to visit all year round thanks to the unique nature and the annual rental income that follows this trend can now reach up to 8% p.a.
Legislative framework for investment in Austria
Czech individuals and legal entities can buy real estate as well as Austrian residents. It is very important to find out in advance the conditions of use for the selected property, which may vary not only for different properties, but also in the individual Länder of Austria. For example, some apartments cannot be rented at all, some only partially, and in some cases commercial rental is an obligation. There are also differences in payment method practices in Austria, and since payment is mostly made in a different currency, you need to keep in mind the exchange rate differences. Another standard is that the purchase price is related to other costs, not including VAT, mostly fees of 10-12% of the purchase price, which include real estate transfer tax, legal services, commissions, etc.
If you prefer to buy a mortgage, there are two options. Apply for a mortgage loan in the Czech Republic, which will be less complicated or apply for a loan directly in Austria. In both cases, the realtor will be happy to assist you, which will facilitate the entire purchase process. Recently, Czech banks have been researching the purpose, and therefore it is best to state that the purchase will be made for recreational property. If you are interested in providing a mortgage at the place of purchase, for example in Austria, you need to prepare for a screening of citizenship, possible forms of residence, gainful employment, or where the money comes from, etc. However, most countries are open to investors.
The I&D team